Ghana Earns $34m Annually in Transit Fees from Burkina Faso, Niger, and Mali

Ghana’s role as a strategic trade corridor for landlocked neighbours Burkina Faso, Niger, and Mali, is generating over $34 million annually from transit trade activities. The revenue comes from services related to the handling and transporting of transit goods, including payments to freight transport operators, freight forwarders, electronic cargo tracking services, and fuel stations.

The country’s port infrastructure, particularly the Tema and Takoradi ports, is pivotal in facilitating this commerce, making Ghana a key gateway to the sea for its Sahelian neighbours. However, despite these economic benefits, the transit trade sector is grappling with several pressing challenges that could erode its competitiveness and deter regional partners.

Transit operators have raised concerns over excessive service charges, frequent delays at the ports, high freight rates, and a proliferation of checkpoints along transit routes. Poor road infrastructure and a lack of rest stops further compound the difficulties faced by commercial drivers and logistics firms, according to a report by Africa Index.

Non-tariff barriers, such as bureaucratic red tape and inconsistent enforcement of transit regulations, also pose significant hurdles, according to industry stakeholders. These factors contribute to longer transit times and inflated transport costs, weakening Ghana’s position in an increasingly competitive regional market.

In March, Ghanaian President John Mahama made his first official visit to Mali, marking his first trip to a member state of the Confederation of Sahel States (CSS) since taking office. He met with Malian leader General Assimi Goïta, who serves as Mali’s transitional president and the chairman of the CSS. The visit was a significant diplomatic move, given the recent shifts in regional alliances following Mali, Burkina Faso, and Niger’s withdrawal from the ECOWAS.

Read Also:

• Nigeria: Police Stray Bullet Kills Student On Way to Write WAEC Exam in Ibadan

About The Author

Oluwasegun Sanusi

author

See author's posts